ppt on acc cement's cash flow analysis and financial ratio analysis along with comparisons with competitors

1. SADA ATUT RAHO
ACC LTD.
EMBRACING TOMMORROW

3. • 1. HIGHLIGHTS OF PERFORMANCE
• Cement despatches were 23.68 million tonnes during the year as compared to
21.17 million tonnes during 2010;
• Consolidated income for the year under review was 10428 crore, an increase of
21% as compared to 8619 crore in 2010;
• Consolidated profit before tax increased in 2011 to 1505 crore against ` 1415
crore in 2010;
• Consolidated profit after tax was higher in 2011 at 1301 crore against ` 1078 crore
in 2010.
• 2. FINANCIAL RESULTS 11-10
• Sale of product and services (net of excise duty)
• and Other Income 9852.20 8074.26
• Profit before Tax 1540.42 1461.45
• Provision for tax 215.16 341.44
• Profit after tax 1325.26 1120.01
• Balance brought forward from previous year 3381.41 3203.85
• Profit available for appropriations 4706.67 4323.86
• Appropriations:
• Interim Dividend 206.52 187.75
• Proposed Final Dividend 319.17 384.88
• Dividend Distribution Tax 85.28 95.10
• Previous Year Dividend Distribution Tax (1.49) (0.93)
• General Reserves 250.00 250.00
• Debenture Redemption Reserve 25.00 25.00
• Amortization Reserves 0.65 0.65
• Surplus carried to the next year’s account 5 3821.54 3381.41

4. • 3. DIVIDEND
Your Directors are pleased to recommend a final dividend of ` 17 per Equity
share of ` 10 each. The Company had distributed an interim dividend of 11
per Equity share in August 2011. The total dividend for the year ended
December 31, 2011 would accordingly be ` 28 per Equity share as against the
total dividend of ` 30.50 per Equity share for the year ended December 31,
2010 which included the payment of one-time ‘‘Special Dividend’’ of ` 7.50 for
the Platinum Jubilee Year. The total outgo for the current year amounts to `
610.97 crore, including dividend distribution tax of ` 85.28 crore, as against `
667.73 crore, including dividend distribution tax of ` 95.10 crore in the
previous year.

5. Cash Flow analysis
2011 2010
Crore Crore
• A. Cash flow from operating activities:
1 Net Profit before Tax 1,540.42 1,461.45
• Adjustments for:
2 Depreciation and Amortisation 475.30 392.68
3 Loss on sale / write off of Fixed Assets (Net) 9.44 38.37
4 Profit on Sale of Current Investments, Other than trade (36.15) -
5 Interest and Dividend Income (155.76) (98.48)
6 Interest Expense 96.91 56.78
7 Provision for Bad and Doubtful Debts and
• Advances written back (Net) (35.43) (31.50)
8 Capital Spares Consumed 14.76 16.51
9 Wealth Tax provision 0.15 0.71
10 Provision for obsolescence of spare parts 6.05 71.19
• Operating profit before working capital changes 1,915.69 1,907.71
• Movements in Working Capital:
11 Decrease / (Increase) in Sundry debtors and
Loans & advances (37.65) 84.88
12 Decrease / (Increase) in Inventories (190.76) (207.20)
13 Decrease / (Increase) in Other current assets 6.06 1.70
14 Increase / (Decrease) in Current liabilities and Provisions 300.46 224.24
• Cash generated from operations 1,993.80 2,011.33
15 Direct Taxes Paid - (Net of refunds) (416.42) (75.95)
• Net Cash flow from operating activities 1,577.38 1,935.38
Cont.

6. • B. Cash flow from investing activities:
16 Loans to Subsidiary Companies (30.64) (58.77)
17 Repayment of Loans from Subsidiary Companies 61.00 23.13
18 Purchase of Fixed Assets
(Including Capital work-in-progress) (468.07) (833.23)
19 Proceeds from sale of Fixed Assets 29.82 22.11
20 Profit on Sale of Current Investments, Other than trade 36.15 -
21 Purchase of Investments - (37.16)
22 Investment in subsidiary Company (50.00) (11.78)
23 Investment in Deposits - (10.00)
24 Dividend Received 31.83 51.66
25 Interest Received 125.67 41.79
• Net cash used in investing activities (264.24) (812.25)
• C. Cash flow from financing activities:
26 Interest paid {includes capitalised
1.28 Crore (Previous Year - ` 36.60 Crore)} (72.76) (78.14)
27 Proceeds from issue of Share Capital
(Including Securities premium) - 0.08
28 (Repayment) / Proceeds of Short term Borrowings (9.93) 9.93
29 Repayment of Long term Borrowings (3.16) (53.03)
30 Dividend paid (including Dividend Distribution Tax) (682.47) (500.23)
• Net cash used in financing activities (768.32) (621.39)
• Net increase / (decrease) in cash and cash equivalents 544.82 501.74
• Cash and cash equivalents at the beginning of the year 2,287.59 1,785.85
• Cash and cash equivalents at the end of the year 2,832.41 2,287.59
• Components of cash and cash equivalents:
• Cash and Bank Balances as per Balance
sheet (Refer Schedule 10) 1,652.56 980.03
Add : Investment in Mutual Funds 594.00 1,307.56
Add : Investment in Certificate of Deposits 585.85 -
• Cash and Cash equivalents in cash flow statement 2,832.41 2,287.59

7. Liquidity And Solvency Ratios
Current Ratio 0.87 0.68 0.67 0.89 0.86
Quick Ratio 0.58 0.43 0.42 0.61 0.55
Debt Equity Ratio 0.07 0.08 0.09 0.10 0.07
Long Term Debt Equity Ratio 0.07 0.08 0.09 0.10 0.07
Debt Coverage Ratios
Interest Cover 15.58 25.57 27.96 42.56 24.05
Total Debt to Owners Fund 0.07 0.08 0.09 0.10 0.07
Financial Charges Coverage Ratio 20.49 32.48 32.02 49.92 28.21
Financial Charges Coverage Ratio Post Tax 19.58 27.64 24.12 38.71 24.63
Management Efficiency Ratios
Inventory Turnover Ratio 18.59 19.04 25.22 27.51 24.85
Debtors Turnover Ratio 42.62 40.04 31.22 24.12 27.40
Investments Turnover Ratio 18.59 19.04 25.22 27.51 24.85
Fixed Assets Turnover Ratio 0.97 0.96 1.19 1.25 1.26
Total Assets Turnover Ratio 1.22 1.11 1.23 1.35 1.55
Asset Turnover Ratio 1.27 0.96 1.19 1.25 1.26
Average Raw Material Holding 39.41 44.39 37.17 33.05 21.34
Average Finished Goods Held 7.09 8.05 7.01 6.45 7.17
Number of Days In Working Capital -21.75 -63.76 -54.17 -17.02 -18.25

8. Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
Profitability Ratios
Operating Profit Margin(%) 18.42 21.42 31.95 24.66 28.15
Profit Before Interest And Tax Margin(%) 12.97 15.86 27.22 20.01 23.24
Gross Profit Margin(%) 13.33 16.29 27.68 20.59 23.72
Cash Profit Margin(%) 15.03 17.36 23.61 19.22 21.57
Adjusted Cash Margin(%) 15.03 17.36 23.61 19.22 21.57
Net Profit Margin(%) 13.78 14.26 19.69 16.29 20.44
Adjusted Net Profit Margin(%) 13.78 14.26 19.69 16.29 20.44
Return On Capital Employed(%) 19.60 20.75 35.80 31.43 39.84
Return On Net Worth(%) 18.42 17.31 26.70 24.61 34.64
Adjusted Return on Net Worth(%) 13.48 15.00 26.32 23.05 29.16
Return on Assets Excluding Revaluations 383.09 344.59 320.45 262.56 221.33
Return on Assets Including Revaluations 383.09 344.59 320.45 262.56 221.33
Return on Long Term Funds(%) 19.60 20.78 35.80 31.43 39.98

9. Profit & Loss Account Ratios
Material Cost Composition 20.92 19.88 15.37 16.32 26.73
Imported Composition of Raw Materials Consumed 7.79 13.74 15.72 9.83 6.49
Selling Distribution Cost Composition 19.85 18.79 17.37 19.05 18.55
Expenses as Composition of Total Sales 0.14 0.67 0.69 0.99 1.29
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 46.10 59.61 31.43 36.20 30.49
Dividend Payout Ratio Cash Profit 33.93 44.14 25.92 29.13 25.13
Earning Retention Ratio 37.00 31.22 68.11 61.35 63.78
Cash Earning Retention Ratio 57.72 51.03 73.78 69.30 71.10
AdjustedCash Flow Times 0.35 0.38 0.29 0.34 0.20
Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
Earnings Per Share 70.59 59.66 85.58 64.62 76.67
Book Value 383.09 344.59 320.45 262.56 221.33
Source : Dion Global Solutions Limited

10. Ratios Acc Ambuja Madras India Grasim
cement
Profitability Ratios
Operating Profit Margin(%) 18.42 22.92 29.52 21.49 25.36
Profit Before Interest And
12.97 17.25 21.68 15.44 21.16
Tax Margin(%)
Gross Profit Margin(%) 13.33 17.67 21.77 15.51 22.44
Cash Profit Margin(%) 15.03 17.90 19.73 12.97 21.93
Adjusted Cash Margin(%) 15.03 17.90 19.73 12.97 21.93
Net Profit Margin(%) 13.78 14.16 11.71 6.93 22.45
Adjusted Net Profit
13.78 14.16 11.71 6.93 22.45
Margin(%)
Return On Capital
19.60 20.96 17.44 10.59 14.48
Employed(%)
Return On Net Worth(%) 18.42 15.28 18.78 7.21 12.93
Adjusted Return on Net
13.48 13.79 19.26 7.30 11.05
Worth(%)
Return on Assets Excluding
383.09 52.38 86.16 132.13 992.19
Revaluations
Return on Assets Including
383.09 52.38 86.16 132.13 992.19
Revaluations
Return on Long Term
19.60 21.05 20.45 12.06 14.57
Funds(%)

11. Liquidity And Solvency
Ratios
Current Ratio 0.87 1.14 0.38 0.95 1.19
Quick Ratio 0.58 0.85 0.34 1.35 0.81
Debt Equity Ratio 0.07 0.01 1.03 0.56 0.07
Long Term Debt Equity Ratio 0.07 0.01 0.73 0.37 0.06
Debt Coverage Ratios
Interest Cover 15.58 32.35 4.58 2.34 37.96
Total Debt to Owners Fund 0.07 0.01 1.03 0.56 0.07
Financial Charges Coverage
20.49 40.81 6.16 3.22 41.84
Ratio
Financial Charges Coverage
19.58 32.81 5.01 2.90 36.59
Ratio Post Tax

12. Management Efficiency
Ratios
Inventory Turnover Ratio 18.59 10.38 16.82 8.98 8.88
Debtors Turnover Ratio 42.62 45.92 16.63 18.11 10.00
Investments Turnover Ratio 18.59 10.38 16.82 8.98 8.88
Fixed Assets Turnover Ratio 0.97 0.88 0.58 0.69 1.59
Total Assets Turnover Ratio 1.22 1.05 0.80 0.71 0.51
Asset Turnover Ratio 1.27 0.88 0.75 0.65 0.53
Average Raw Material
39.41 15.54 112.89 -- 48.48
Holding
Average Finished Goods
7.09 5.97 6.01 -- 18.20
Held
Number of Days In Working
-21.75 20.84 -83.23 102.55 28.14
Capital

13. Profit & Loss Account
Ratios
Material Cost Composition 20.92 19.49 19.14 13.96 53.29
Imported Composition of
7.79 12.18 2.15 9.07 41.75
Raw Materials Consumed
Selling Distribution Cost
19.85 19.85 19.02 24.16 0.49
Composition
Expenses as Composition
0.14 0.94 0.42 0.06 2.84
of Total Sales
Earnings Per Share 70.59 8.01 16.18 9.54 128.34
86.16
Book Value 383.09 52.38 132.42 992.19
Source : Dion Global Solutions Limited